New Study: Offshore expansion key to growth for NZ firms

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New Study: Offshore expansion key to growth for NZ firms

Regus expands NZ footprint in response to local demand for more flexible workplaces

New Zealand, March 12 2012 – A new study by Regus, the world’s largest provider of flexible workplace solutions, reveals 41% of New Zealand (NZ) companies plan to expand overseas in the next few years to generate new growth and investment opportunities.

Findings from the Regus Global Survey, which polled the opinions of more than 12,000 companies around the world, suggests that firms with an international sales focus are more likely to report better performance results than those concentrating on the domestic market.

William Willems, Regus Regional Vice President South East Asia, Australia and New Zealand comments: “Our results indicate that in the current economic climate, NZ firms concentrating on the domestic front risk being left behind in fiercely competitive global markets. In order to enhance earnings potential and spread risk, these businesses should consider options to facilitate effective and cost-efficient ways of moving cross-border,” said Mr Willems.

The Regus survey also analysed the perceived barriers to international expansion, with companies around the world citing access to ‘property’ and ‘people’ as the key obstacles to offshore growth. Findings among NZ firms show:

• 30% of businesses say the biggest obstacle to overseas expansion are the challenges of setting up a physical presence in a foreign country.
• 57% of companies admit property commitments have to be very short term when setting up a foreign operation, as they do not know how quickly or slowly they will grow.
• Opinion is split over whether senior management for overseas operations should be from the home country (41%) or a local manager (30%).

“While property and people are perceived as potentially major challenges, the wide availability of flexible workspace options around the globe make the ‘property’ element more perception than reality. Technology in particular, has been a key enabler in helping firms overcome the difficulties of setting up a fixed office space. The phenomenon of the virtual office for example, has provided a platform for firms of all sizes to access global markets of scale but at a fraction of the cost.

“The ‘people’ issues however, do require careful judgement. Decisions about whether to install a local manager or one from the company’s home country are critical and largely rest on whether sales are handled mainly through a few major distributors, or with direct contact amongst a wide range of customers. Such decisions will depend on the type and size of the business and the industry of operation,” said Mr Willems.

The Regus findings also coincide with the launch of Regus’ new business centre at 21 Queen St Auckland. The expansion comes in response to increased demand for new, more flexible and cost-effective workplace options among NZ firms and the desire among businesses to cut unnecessary overheads and pay only for space that they need and use.

Mr Willems added: “As part of our global growth plans, we are making a considerable investment in the NZ market. We also have plans to open more centres in other cities in the months to come. Our expansion aims to support local business growth, particularly for SMEs and start-ups seeking an impressive professional presence but without the expense and workload of managing their own office.”

21 Queen St Auckland

21 Queen St is one of Auckland’s most strategic and prime CBD development sites. The property boasts a world-class working environment, a Premium Grade Status and 5 Star Green rating. Situated in a premiere location, right in the epicenter of the commercial, transport and entertainment hub. The centre features 912 sqm of workspace, 135 workstations, a business lounge, two meeting rooms and state-of-the-art video conferencing facilities.

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About Regus
Regus is the world’s largest provider of flexible workplaces, with products and services ranging from fully equipped offices to professional meeting rooms, business lounges and the world’s largest network of video communication studios. Regus enables people to work their way, whether it’s from home, on the road or from an office. Customers such as Google, GlaxoSmithKline, and Nokia join hundreds of thousands of growing small and medium businesses that benefit from outsourcing their office and workplace needs to Regus, allowing them to focus on their core activities.

With 1,000,000 customers and growing and a global footprint of workplace facilities spread across1,200 locations in 550 cities and 94 countries, Regus allows individuals and companies to work wherever, however and whenever they want to. Regus was founded in Brussels, Belgium in 1989, is headquartered in Luxembourg and listed on the London Stock Exchange. For more information please visit: www.regus.com

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